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Xcelerate Productions Inc. manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products:

Normal : Selling price per unit $30 Variable costs per unit $24.81 Contribution margin per unit $5.19 Machine hours required 0.02

High : Selling price per unit $42 Variable costs per unit $35 Contribution margin per unit $7.00 Machine hours required 0.04

Superior : Selling price per unit $52 Variable costs per unit $48 Contribution margin per unit $4.00 Machine hours required 0.08

If the limited resource can be increased by 780 hours, calculate the maximum increase in contribution margin. Assume that Xcelerate can sell all products manufactured.

Accounting Basics, Accounting

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  • Reference No.:- M92593111
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